Maxim Group analyst Anthony Vendetti has maintained their neutral stance on VERO stock, giving a Hold rating on March 31.
Anthony Vendetti has given his Hold rating due to a combination of factors impacting Venus Concept’s financial outlook. The company’s recent 4Q24 results showed revenue falling short of expectations, which Vendetti attributes to a strategic shift from a subscription-based sales model to a cash system sales strategy, compounded by higher interest rates affecting demand for capital equipment. Despite these challenges, there are positive signs, such as the company’s progress in international restructuring and a significant increase in international distributor sales.
However, Vendetti remains cautious due to concerns over Venus Concept’s capital structure and the constraints it imposes, particularly in light of the recent reverse stock split. The company’s guidance for 1Q25 also came in below expectations, leading to a reduction in revenue and margin estimates for the upcoming years. Given these mixed signals, Vendetti believes the risk and reward are balanced, justifying a Hold rating rather than a recommendation to buy the stock at this time.
VERO’s price has also changed dramatically for the past six months – from $0.568 to $2.620, which is a 361.27% increase.